1. Randy owns a one-fourth capital and profits interest in the calendar-year RUSR Partnership. His adjusted basis for his partnership interest was $200,000 when he received a proportionate nonliquidating distribution of the following assets.

Partnerships Basis in Asset Assets Fair Market Value

Cash $120,000 $120,000

Inventory 60,000 90,000

1. Calculate Randys recognized gain or loss on the distribution, if any. Explain.

2. Calculate Randys basis in the inventory received.

3. Calculate Randys basis for his partnership interest after the distribution.